great news nrg doca accepted, page-9

The very large share holders (>1000000 shares)will receive a few thousand dollars versus just dollars.


awg801, from reading the Second Administrators Report, shareholders will get no cash from the DOCA unless they are also creditors of NFL or one of it's subsidiaries.

The administrators had no offers for the Singapore plant and Power Knight as a secured creditor of NFPL (the direct owner of the plant) have appointed receivers. Liquidation of the plant (which is on care and maintenance) will not raise enough to fully pay out creditors of NFPL leaving nothing for creditors of NFL meaning that shareholders will not get a cent.

Due to the above the administrators have concluded that the only thing of value within NFL is the shell of the company itself.

Creditors have approved the DOCA involving NRG buying the shell of NFL. Shareholders will vote on that acquisition, we get no vote on the other proposals. If the vote is not approved by shareholders, or other conditions imposed by NRG aren't met, then I presume it goes back to the administrators to re-convene another creditors meeting.

Shareholders only hope from here is that NRG puts a good asset into the shell of NFL and that eventually we are able to realise some value once the shares are relisted.


* In over 16 years of investing this is fortunately my only first hand experience of voluntary administration. As such I've had little idea of the process and potential eventualities hence I've had little input on this matter.